1986 Acura Introduction

On March 27, 1986, American Honda Co., Inc. will introduce
Acura
Automobiles to the U.S. market.

Acura Products wil be sold through the newly established
Acura
Automobile Division of American Honda Motor Co., Inc., which is
separate from the existing Honda Automobile Division. The
Acura
Division will establish its own independent dealer organization
to
handle the sales, parts and service requirements of Acura
automobiles. This approach was chosen to establish the Acura
line in
its own right, as an exclusive range of automobiles with their
own
market position.

The Acura Division will begin retail sales at the end of March,
1986. There will be about 60 dealers initially, and by the end of
1986 the Acura Division is expected to have 150 dealers in
operation
nationwide. For calendar year 1986, sales are projected to be
about
55,000 units.

The initial offerings of the Acura Automobile Division will be
the
all-new Legend, a 4-door luxury touring sedan powered by a
24-valve,
SOHC, 2.5 liter V-6 engine, and the Integra, a line of 3- and
5-door
sports sedans powered by 1.6 liter, 16 valve, 4-cylinder DOHC
engine.

The establishment of the Acura Division in the United States
is
the largest challenge that Honda Motor Co., Ltd. and American
Honda
Motor Co., Inc. have faced in their 26 year history in the U.S.

Several key factors led to the establishment of the Acura
Division
in the U.S.: First is the resurgence of the U.S. automobile
industry.
U.S. sales have rebounded from fewer than 8-million cars in
1982 to
sales of almost 11-million in 1985. Industry forecasts project the
U.S. automobile market to remain around the 11-million level
through
the early 1990s.

Even more important than the growth in sales is the change
in
model segmentation that is occurring in the U.S. market. It's
expected that the strongest growth through the 1990s will be in
the
luxury and sporty car segments, markets where Honda products
have not
previously competed to any great degree. Recent evidence of the
strength in these segments is the growth in popularity of luxury
cars
such as Audi, BMW, and Mercedes-Benz, and the rising sales of
sports
cars such as the Fiero, Nissan 300ZX, Mazda RX7,Chevrolet
Corvette
and Toyota MR2.

The new Acura Automobile Division will market a range of
sporty/luxury vehicles appealing to these growing market
segments.
The primary difference between the Honda and Acura Divisions
will be
in basic product orientation:

1) The Honda Division will continue to stress low to medium
priced
vehicles--family automobiles with an emphasis on economy,
comfort and
value for money.

2) The Acura Division will market medium to high priced
vehicles
which emphasize performance and luxury. These vehicles will
use the
latest in technology and will be different in concept, styling and
drivetrain from Honda Division products.

In order to reach the consumers responsible for the growth
in the
luxury and sporty car segments it was decided that the Acura
Division
and its products should be positioned separately and distinctly
from
existing Honda products:

1) Consumers in these growing market segments are
looking for
something different than the current line of Honda Civics,
Accords
and Preludes.

2) Consumers are looking for a combination of upscale
products and
technology that are not found in the low to medium priced cars of
the
Honda Division.

3) Consumers in these upscale market segments (Audi,
BMW, M-B) do
not include current Honda products in their purchase
considerations
primarily because of the strongly established Honda reputation
for
low priced, high fuel economy cars, all key elements which have
made
Honda so successful in the lower priced market segments.

With the newly established Acura Automobile Division, and
its new
product lines, a strong market position in the growing luxury and
sporty car segment is expected to be established.

DESIGN OBJECTIVES:
The Acura automobiles--the Legend 4-door sedan and Integra
3-door and
5-door sedans--were designed for international appeal, and
created
with input from North America, Europe and Japan. The Integra
program
also gained from the considerable input of Honda Research of
America,
and American Honda Motor Co.,Inc.

LEGEND AND INTEGRA OVERVIEW:
The Acura automobiles are performance driver's cars. They're
powered
by high output, 4 valve engines, have taut suspensions and
precise
steering, and are aerodynamically efficient. Spacious on the
inside,
they're designed to satisfy the most demanding driver while
delivering the kind of efficiency intelligent people demand
today.

The Legend is a luxury touring sedan with an emphasis on
performance. Innovative engineering and packaging make it
spacious
inside while keeping outside dimensions compact. Its powerful
24-valve V-6 engine, road tuned suspension, and precise
steering
allow it to excel in every performance category. Inside, it provides
the driver with an environment which minimizes stress and lets
him
take full advantage of the car's capabilities.